DAX Xetra (cash index)
A cautious look to the DAX in the past couple of sessions as the bulls have stuttered in their attempt to kick start the recovery again.
The uptrend channel is still a guiding hand for the bulls to make gains, whilst momentum indicators are positively configured on a medium term basis to suggest that weakness is still a chance to buy.
Although the negative candlestick from yesterday’s session suggests that the bulls are not quite ready for the next leg higher, the important basis of support comes with the breakout above 11,370 and the pullback 11,415 which gives a near term buy zone 11,370/11,415.
Whilst this holds as support on a closing basis, the bulls will retain a degree of control in the recovery.
Today’s cautious consolidation again suggests that there is a pause button pushed, and this is reflected in the flattening daily momentum and an increasingly neutral configuration on the hourly chart.
- There is still a gauge to watch on the hourly chart with a pivot around 11,556 and a move above here that is held would be a positive signal that the bulls were beginning to get going again.
- Subsequent resistance is yesterday’s high at 11,618 and 11,677.
"DISCLAIMER: This report does not constitute personal investment advice, nor does it take into account the individual financial circumstances or objectives of the clients who receive it. All information and research produced by Hantec Markets is intended to be general in nature; it does not constitute a recommendation or offer for the purchase or sale of any financial instrument, nor should it be construed as such.
All of the views or suggestions within this report are those solely and exclusively of the author, and accurately reflect his personal views about any and all of the subject instruments and are presented to the best of the author’s knowledge. Any person relying on this report to undertake trading does so entirely at his/her own risk and Hantec Markets does not accept any liability. "